Stiglitz recommendations are confused – and unintentionally consolidate Lindner’s ambitions

Christian Lindner (front), Robert Habeck

The FDP boss and the co-boss of the Greens are interested in the post of finance minister.

(Photo: dpa)

The recruitment of Joseph Stiglitz, winner of the Nobel Prize for Economics, for the Federal Ministry of Finance is more than unusual. The left economist speaks out in favor of Robert Habeck from the Greens and warns of FDP leader Christian Lindner.

He accuses him of old thinking that is not very well founded. At a time when inflation is rising dramatically, the US economist is hoping for a German finance minister who will spend the money with both hands and incur massive debts in return.

As outstanding as Stiglitz’s academic record is, his political recommendations are confused. He wove economic and political wreaths for the Venezuelan president and left-wing populist Hugo Chavez. He warned against the country’s dependence on raw materials, but actually his eyes were shining about the supposedly efficient redistribution policy.

In Venezuela today, inflation is galloping and people live in poverty. Venezuela is a failed state. However, Stiglitz did not comment in detail on this. For this reason alone, given his fondness for dictators to fill cabinet positions in Germany, his move should not be taken seriously.

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Larry Summers also warns that the economy will overheat

It’s not just about Venezuela, but also about Germany. Here, too, Stiglitz is wrong. Germany is miles away from South American standards. Robert Habeck is a stable democrat, but economic and financial policy that imposes huge debt-financed spending programs is wrong.

Joseph E. Stiglitz

The economist has an excellent academic record, but his policy recommendations are irritating.

(Photo: dpa)

Even moderate Keynesians like former US Treasury Secretary and Harvard economist Larry Summers warn of the US economy overheating. Inflation there has already reached dangerous levels. It’s not that far in Germany yet.

But inflation has already increased here too and will dominate the economic and financial policy of the new federal government. Stiglitz wants the inflation-friendly Habeck rather than the politically stable Lindner as finance minister.

Stiglitz makes the mistake of many German leftists to believe that a left alliance with a corresponding agenda had actually been chosen. It is correct, however, that the Germans want to be governed from the middle, as always. Experiments like the ones Stiglitz had in mind do not fit in there. With his admission, Stiglitz unintentionally made a recommendation for Lindner in the end.

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